Vicki Owns and Operates a News Agency (As a Sole

question 48

Multiple Choice

Vicki owns and operates a news agency (as a sole proprietorship) .During 2015,she incurred expenses of $24,000 to increase circulation of newspapers and magazines that her agency distributes.For regular income tax purposes,she elected to expense the $24,000 in 2015.In addition,Vicki incurred $15,000 in circulation expenditures in 2016 and again elected expense treatment.What AMT adjustments will be required in 2015 and 2016 as a result of the circulation expenditures?

• A)$16,000 positive in 2015,$2,000 positive in 2016.
• B)$16,000 negative in 2015,$2,000 positive in 2016.
• C)$16,000 negative in 2015,$10,000 positive in 2016.
• D)$16,000 positive in 2015,$10,000 positive in 2016.
• E)None of the above.

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Definitions:

Theorizing

Formulating theories or systematic ideas about how certain aspects of the world work, often based on observation, experimentation, and reasoning.

Psychogenic Need

A term referring to emotional or psychological needs that influence an individual's mental health and behavior, rather than physical needs.

Basic Elements

Fundamental components or building blocks that form the basis or essentials of a larger system, concept, or structure.

Trait Approach

A methodology in psychology focused on the identification and measurement of specific personality traits as key components in understanding human behavior.